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Ala. Code § 10A-2A-8.10

Vacancy on Board of Directors.

Known as the Alabama Business and Nonprofit Entity Code

The act spans §§ 10A-1-1.01 to 10A-9A-9.09 (1,341 sections).

(Act 2019-94, §1; Act 2023-503, §3.)

(a) Except as otherwise provided in Section 10A-2A-8.10(b) or the certificate of incorporation, if a vacancy occurs on the board of directors, including a vacancy resulting from an increase in the number of directors:

(1) the stockholders may fill the vacancy;

(2) the board of directors may fill the vacancy; or

(3) if the directors remaining in office are less than a quorum, they may fill the vacancy by the affirmative vote of a majority of all the directors remaining in office.

(b) Unless the certificate of incorporation provides otherwise, if the vacant office was held by a director elected by a voting group of stockholders, only the holders of stock of that voting group are entitled to vote to fill the vacancy if it is filled by the stockholders, and only the remaining directors elected by that voting group, even if less than a quorum, are entitled to fill the vacancy if it is filled by the directors.

(c) A vacancy that will occur at a specific later date (by reason of a resignation effective at a later date under Section 10A-2A-8.07(b) or otherwise) may be filled before the vacancy occurs but the new director may not take office until the vacancy occurs.

Official source: Alabama Legislature (ALISON). Reproduced from public-domain Alabama statutes; confirm against the official source for the current text. Not legal advice.